| Author: |
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Danielle |
| Date: |
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September 6, 2001 |
| Question: |
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I leased a car in March 2001 from a company that specializes in
leasing cars to people with bad credit. Now my debts have added up and
there is no way I make all my payments every month. I WANT to get rid
of my vehicle if I make a proposal or declare bankruptcy. What happens
in this case? Will I have to keep my vehicle and make my monthly
payments still because it is a secured debt? It is my car that is
giving my the financial problems in the first place. I would be fine
without it.
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From: |
|
Ann Clarke, Collins Barrow Limited |
| Date: |
|
September 6, 2001 |
| Answer: |
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You can give up the vehicle in a bankruptcy or proposal. The secured
creditor will sell it, apply the proceeds to your lease, and the
remainder of the lease will become an unsecured debt in the bankruptcy
or proposal.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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